Wall Street Bonuses Projected to Rise Third Straight Year
Johnson Associates projects Wall Street bonuses will increase in 2026, led by equity sales and IPO underwriting gains of up to 30 percent.
Wall Street bonuses are projected to increase for a third consecutive year in 2026, according to compensation consultancy Johnson Associates. The growth follows a 9 percent rise in worldwide investment banking fees, which totaled 99.4 billion dollars during the first nine months of the year.
Bankers in equity sales, IPO underwriting, and trading are expected to see the highest gains, with estimated increases between 20 and 30 percent. M&A advisors are projected to see raises of 15 to 20 percent, while fixed-income professionals may see increases ranging from 7.5 to 12.5 percent.
Other sectors face a different outlook. Bonuses for insurance and asset management executives are expected to remain flat, and incentives in private credit may decline due to redemption requests and bankruptcies.
Alan Johnson, founder and managing director of the consultancy, warned that 2026 may be the peak year for compensation. He noted that "this may be the peak year, as 2027 profits may be affected by higher interest rates, geopolitical turmoil and market volatility."
